EUR/USD keeps the red post-CPI, near 1.0640
The single currency remains in the negative territory today, with EUR/USD hovering over 1.0630 in the wake of EMU’s flash CPI.
EUR/USD still weak after data
Spot posted no reaction after the preliminary inflation figures gauged by the CPI in the euro region have matched expectations for the month of November.
In fact, consumer prices rose at an annualized 0.8%, a tad higher than the October gain, while prices excluding Food and Energy costs have also rose 0.8%.
The pair remains on the defensive for the time being, after the earlier bullish attempt failed to extend further north of the key resistance area around 1.0660.
Looking ahead, President Mario Draghi is expected to speak at the 100th Anniversary of University of Deusto Business School in Madrid.
Across the pond, the ADP report is expected to show that the US private sector has added 160K jobs in November, up from October’s 147K. Further publications in the US docket comprise Personal Income/Spending, inflation figures tracked by the PCE, the Chicago Fed PMI and Pending Home Sales, all preceding the Fed’s Beige Book. In addition, FOMC’s J.Powell (permanent voter, neutral) and Cleveland Fed L.Mester (voter, hawkish) are due to speak
EUR/USD levels to watch
The pair is now down 0.07% at 1.0643 facing the initial support at 1.0515 (2016 low Nov.24) followed by 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003). On the other hand, a break above 1.0685 (high Nov.28) would target 1.0700 (23.6% of the November drop) en route to 1.0820 (low Mar.10).